Alibaba's founders set up charitable trust seen valued at $3 billion

BEIJING Fri Apr 25, 2014 12:34pm IST

Jack Ma, the chairman of China's largest e-commerce firm Alibaba Group, speaks during a conference in Hong Kong March 20, 2013. REUTERS/Bobby Yip/Files

Jack Ma, the chairman of China's largest e-commerce firm Alibaba Group, speaks during a conference in Hong Kong March 20, 2013.

Credit: Reuters/Bobby Yip/Files

Related Topics

Stocks

   

BEIJING (Reuters) - The founders of Chinese internet company Alibaba Group Holding Ltd have set up a charitable trust focusing on the environment and health that could be worth as much as $3 billion, making it one of the biggest in Asia.

Jack Ma, Alibaba's founder and executive chair, and Joe Tsai, a co-founder of Alibaba, created the trust that will be funded by share options that represent about 2 percent of their combined equity in Alibaba, the company said in a statement on its microblog on Thursday.

Alibaba did not give a value for the investment. The trust is being set up as Alibaba prepares for a highly anticipated initial public offering that could value the company at $151 billion, according to analysts. That would give the trust a value of $3.02 billion.

"It is impossible for me to be a doctor. But I can have my own way to save lives," Ma was quoted by the state news agency Xinhua as saying. Ma's personal fortune is worth around $8.9 billion, according to Forbes.

Alibaba, founded 15 years ago by Ma, has cornered the Chinese Internet consumer market and expanded into everything from online auctions to messaging and payments.

Philanthropy in China has yet to take off, as some wealthy Chinese fear generous donations could invite unwanted attention on their fortunes. China ranks towards the bottom of the list of countries where people give money to charity, volunteer or help a stranger, according to The World Giving Index, compiled by the Charities Aid Foundation.

($1 = 6.2489 Chinese Yuan)

(Reporting by Sui-Lee Wee; Editing by Miral Fahmy)

FILED UNDER:

Hack Attack

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Indian in Iraq

Indian in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage